Salzgitter Shares Fall After Sales Drop on Weak Demand, High Energy Prices

Dow Jones03-23

By Nina Kienle

Shares in Salzgitter dropped on Monday after the steel company posted lower full-year sales on weak demand and high energy prices.

In early European trading, shares traded 8.6% lower at 32.66 euros. Shares are 19% lower in the year to date.

The German company posted lower full-year sales in most business units, with steel production dropping to 3.17 billion euros ($3.67 billion) from 3.39 billion euros. Sales in steel processing fell to 1.22 billion euros from 1.58 billion euros.

Steel-related activities were burdened by unfavorable economic conditions, with rolled steel product prices dropping below the level posted in 2024, Salzgitter said.

Overall, the performance in 2025 was affected by persistently weak demand in key customer sectors, high energy prices and international competition, it added.

For the full year, the company posted a loss before taxes of 27.7 million euros, narrowing from the prior year's loss of 269.2 million euros.

Salzgitter said it would keep a dividend of 20 European cents per share.

The company confirmed its preliminary results of lower group sales and earnings before interest, taxes, depreciation, and amortization.

Meanwhile, the company also confirmed its outlook for 2026, targeting sales around 9.5 billion euros. Ebitda is anticipated in the range of 500 million to 600 million euros, while earnings before taxes are expected between 75 million and 175 million euros.

The confirmation of the outlook, despite the conflict in the Middle East, is a small positive in a weak market, Jefferies analysts said.

Nevertheless, the Ebitda target range remains below analysts' forecast of 663 million euros, according to Visible Alpha. J.P. Morgan analysts see a risk of cuts to 2026 consensus Ebitda estimates, they said in a note to clients.

Germany's planned investment and infrastructure programs haven't resulted in a marked economic recovery, but positive stimulus from the European Union's trade defense measures is anticipated, it added.

Salzgitter will prioritize improving profitability, investment discipline and working capital management going forward, it said.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

March 23, 2026 05:46 ET (09:46 GMT)

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Salzgitter Shares Fall After Sales Drop on Weak Demand, High Energy Prices

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